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Drilling battle draws closer to these shores

Some think the time is right to lift state restrictions

By JOE FOLLICK H-T Capital Bureau

Published: Sunday, June 21, 2009 at 1:00 a.m.

Last Modified: Saturday, June 20, 2009 at 10:02 p.m.

TALLAHASSEE - Drilling for oil and natural gas within 10 miles of Florida's coast has suddenly become one of the chief objectives for Republican legislative leaders and industry backers who see a rare convergence of political opportunity and public sentiment.

"Floridians are realizing that now more than ever it's time to make this decision that's in Florida's best interest economically," said Lakeland Republican Rep. Seth McKeel.

Opponents see it differently, but don't dispute the momentum.

"We expect to see an assault on our beaches from Big Oil the likes of which we've never seen in the 25-year history of this fight," said Mark Ferrulo, executive director of environmental group Progress Florida.

At stake is whether to open drilling within eyesight of the state's beaches, a possibility that has long been rejected as too great a threat to the state's tourism industry and environment.

But rising gas prices and the promise that drilling will create high-paying jobs and pump billions of dollars into the state's economy are also creating momentum.

"Next year is an important year," said David Mica, executive director of the oil industry-backed Florida Petroleum Council.

Rep. Dean Cannon, R-Winter Park, is expected to become House speaker in 2010 -- a role that brings virtual veto power to legislation and control over lawmakers' roles in the Legislature.

Cannon surprised opponents last year with a last-minute push to allow the Florida Cabinet to consider and approve leasing of state land off the coast for oil drilling.

The proposal was approved in the House but never voted on in the Senate. Still, the message was as important as the outcome: Oil drilling will be a priority for Cannon.

In a letter released last week, Cannon repeated his promise for a "careful and thoughtful way to preserve Florida's beaches and beautiful views from our coastline."

He wrote, "We have the tremendous advantage of nearly 100 years of exploration experience and regulatory understanding from both the federal and state governments, which will make such an expansion safer, cleaner, and more profitable."

Cannon said any state legislation will let the governor and Cabinet, with strict oversight from the state Department of Environmental Management, approve any leases.

He said the law would ban permanent drilling structures and include a "roadmap for our utilities to become more dependent on renewable fuels in the years ahead" with the revenue from oil drilling leases dedicated to education and environmental programs.

The group behind Cannon's sudden push consists of a group of Texas-based oil companies promising new technology that, after initial exploration, would keep oil extraction operations underwater and out of sight.

Opponents scoff at the claim, saying the technology is untested and the risk of environmental contamination from on-shore holding and refining facilities almost certain.

"I tend to avoid the 'Can you see it or can you not see it' argument," Ferrulo said. "Out of sight should not be out of mind."

Eric Draper, a longtime lobbyist for Audubon of Florida who is running as a Democrat for state agricultural commissioner next year, said the public does not want expanded drilling.

"I think the public is going to look and say, 'Do we want Florida to be a state where we protect our coastal beach economy which is worth $50 billion or more for a gamble, a promise, a bet, from Texas oil men,'" Draper said. "If I have to choose between a guy who owns the hotel on Clearwater Beach and the guy who owns the oil rigs in Texas, I'm choosing the guy in Clearwater Beach."

But supporters say that argument exaggerates environmental threats while ignoring the immediate impact on the economy.

McKeel has led the push for expanded drilling. He said that in three meetings with groups of citizens last week, he did not hear a single opponent.

"We're talking about creating an industry with high-tech, high-wage, high-skill jobs with the potential for $7 to $10 billion for Florida," McKeel said. "To me, it's a no-brainer."

Few argue that the oil and gas potential in the Gulf waters would make much of a dent in the global market. Instead, proponents say the expansion would help the state's economy and provide a hedge against international volatility.

Mica said that with state approval, natural gas could be extracted from the "Destin Dome" off of the Panhandle within a few years.

He said that, provided government allows permitting to occur quickly, oil from new sites in the Gulf could be on the market in five years.

But he said the economic impact would happen sooner, with jobs created for exploration and surveying.

Sen. Mike Bennett, R-Bradenton, said the mixture of politics and geography may end up pushing lawmakers to sidestep the issue by placing the matter before voters with a 2010 constitutional amendment.

He said statewide candidates may look at voters along the coast, where drilling opposition is greater, for their own political success.

"Are they going to be looking to take the safe way out?" said Bennett, an opponent of drilling. "If you look at the state of Florida, the money and the votes are on the coast."

Bennett said candidates may not want to touch a topic that is "extremely controversial."

Half of the public, he said, "says 'not only no, but hell no' and the other half is saying 'not only yes, but hell yes.'"

<p><em>TALLAHASSEE</em> - Drilling for oil and natural gas within 10 miles of Florida's coast has suddenly become one of the chief objectives for Republican legislative leaders and industry backers who see a rare convergence of political opportunity and public sentiment.</p><p>"Floridians are realizing that now more than ever it's time to make this decision that's in Florida's best interest economically," said Lakeland Republican Rep. Seth McKeel.</p><p>Opponents see it differently, but don't dispute the momentum.</p><p>"We expect to see an assault on our beaches from Big Oil the likes of which we've never seen in the 25-year history of this fight," said Mark Ferrulo, executive director of environmental group Progress Florida.</p><p>At stake is whether to open drilling within eyesight of the state's beaches, a possibility that has long been rejected as too great a threat to the state's tourism industry and environment.</p><p>But rising gas prices and the promise that drilling will create high-paying jobs and pump billions of dollars into the state's economy are also creating momentum.</p><p>"Next year is an important year," said David Mica, executive director of the oil industry-backed Florida Petroleum Council.</p><p>Rep. Dean Cannon, R-Winter Park, is expected to become House speaker in 2010 -- a role that brings virtual veto power to legislation and control over lawmakers' roles in the Legislature.</p><p>Cannon surprised opponents last year with a last-minute push to allow the Florida Cabinet to consider and approve leasing of state land off the coast for oil drilling.</p><p>The proposal was approved in the House but never voted on in the Senate. Still, the message was as important as the outcome: Oil drilling will be a priority for Cannon.</p><p>In a letter released last week, Cannon repeated his promise for a "careful and thoughtful way to preserve Florida's beaches and beautiful views from our coastline."</p><p>He wrote, "We have the tremendous advantage of nearly 100 years of exploration experience and regulatory understanding from both the federal and state governments, which will make such an expansion safer, cleaner, and more profitable."</p><p>Cannon said any state legislation will let the governor and Cabinet, with strict oversight from the state Department of Environmental Management, approve any leases.</p><p>He said the law would ban permanent drilling structures and include a "roadmap for our utilities to become more dependent on renewable fuels in the years ahead" with the revenue from oil drilling leases dedicated to education and environmental programs.</p><p>The group behind Cannon's sudden push consists of a group of Texas-based oil companies promising new technology that, after initial exploration, would keep oil extraction operations underwater and out of sight.</p><p>Opponents scoff at the claim, saying the technology is untested and the risk of environmental contamination from on-shore holding and refining facilities almost certain.</p><p>"I tend to avoid the 'Can you see it or can you not see it' argument," Ferrulo said. "Out of sight should not be out of mind."</p><p>Eric Draper, a longtime lobbyist for Audubon of Florida who is running as a Democrat for state agricultural commissioner next year, said the public does not want expanded drilling.</p><p>"I think the public is going to look and say, 'Do we want Florida to be a state where we protect our coastal beach economy which is worth $50 billion or more for a gamble, a promise, a bet, from Texas oil men,'" Draper said. "If I have to choose between a guy who owns the hotel on Clearwater Beach and the guy who owns the oil rigs in Texas, I'm choosing the guy in Clearwater Beach."</p><p>But supporters say that argument exaggerates environmental threats while ignoring the immediate impact on the economy.</p><p>McKeel has led the push for expanded drilling. He said that in three meetings with groups of citizens last week, he did not hear a single opponent.</p><p>"We're talking about creating an industry with high-tech, high-wage, high-skill jobs with the potential for $7 to $10 billion for Florida," McKeel said. "To me, it's a no-brainer."</p><p>Few argue that the oil and gas potential in the Gulf waters would make much of a dent in the global market. Instead, proponents say the expansion would help the state's economy and provide a hedge against international volatility.</p><p>Mica said that with state approval, natural gas could be extracted from the "Destin Dome" off of the Panhandle within a few years.</p><p>He said that, provided government allows permitting to occur quickly, oil from new sites in the Gulf could be on the market in five years.</p><p>But he said the economic impact would happen sooner, with jobs created for exploration and surveying.</p><p>Sen. Mike Bennett, R-Bradenton, said the mixture of politics and geography may end up pushing lawmakers to sidestep the issue by placing the matter before voters with a 2010 constitutional amendment.</p><p>He said statewide candidates may look at voters along the coast, where drilling opposition is greater, for their own political success.</p><p>"Are they going to be looking to take the safe way out?" said Bennett, an opponent of drilling. "If you look at the state of Florida, the money and the votes are on the coast."</p><p>Bennett said candidates may not want to touch a topic that is "extremely controversial."</p><p>Half of the public, he said, "says 'not only no, but hell no' and the other half is saying 'not only yes, but hell yes.'"</p>